Correlation Between S A P and Qualcomm Incorporated

Can any of the company-specific risk be diversified away by investing in both S A P and Qualcomm Incorporated at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining S A P and Qualcomm Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SAP SE ADR and Qualcomm Incorporated, you can compare the effects of market volatilities on S A P and Qualcomm Incorporated and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in S A P with a short position of Qualcomm Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of S A P and Qualcomm Incorporated.

Diversification Opportunities for S A P and Qualcomm Incorporated

-0.04

Correlation Coefficient

S A P  Qualcomm Incorporated

Good diversification

The 3 months correlation between SAP and Qualcomm is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SAP SE ADR and Qualcomm Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qualcomm Incorporated and S A P is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SAP SE ADR are associated (or correlated) with Qualcomm Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qualcomm Incorporated has no effect on the direction of S A P i.e., S A P and Qualcomm Incorporated go up and down completely randomly.

Pair Corralation between S A P and Qualcomm Incorporated

Considering the 90-day investment horizon SAP SE ADR is expected to under-perform the Qualcomm Incorporated. But the stock apears to be less risky and, when comparing its historical volatility, SAP SE ADR is 1.6 times less risky than Qualcomm Incorporated. The stock trades about -0.09 of its potential returns per unit of risk. The Qualcomm Incorporated is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  15,788  in Qualcomm Incorporated on August 31, 2025 and sell it today you would earn a total of  1,021  from holding Qualcomm Incorporated or generate 6.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SAP SE ADR  vs.  Qualcomm Incorporated

SAP SE ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days SAP SE ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Qualcomm Incorporated

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Qualcomm Incorporated are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Qualcomm Incorporated may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with S A P and Qualcomm Incorporated

The main advantage of trading using opposite S A P and Qualcomm Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S A P position performs unexpectedly, Qualcomm Incorporated can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Qualcomm Incorporated will offset losses from the drop in Qualcomm Incorporated's long position.

The idea behind SAP SE ADR and Qualcomm Incorporated pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.